Report: Reverse Logistics Integral to Accelerating Circular Fashion | Sustainable Brands

Global Fashion
Agenda
(GFA) — a non-profit organization that fosters industry collaboration on
sustainability in fashion to accelerate impact — has released a report that
outlines how fashion brands, retailers, value chain partners and logistics
providers can leverage reverse logistics to cultivate an effective and holistic
circular fashion system.

Written with support from GFA’s Insight Partner, global logistics leader
Maersk, Reverse
Logistics for Circular Fashion
Systems
combines extensive research and input from renowned experts from stakeholders
including Circle Economy Foundation, Ellen MacArthur Foundation
(EMF), H&M Group, Nike, PUMA Group, Target and VF
Corporation. It highlights the critical role of logistics in supporting
fashion companies to adopt more circular systems by managing the reverse flow of
materials and products from end users, and returning them back into the system
for resale, remaking or recycling — extending their lifecycle, maximizing value
and minimizing waste.

As EMF highlighted in a recent
report,
effectively reining in global fashion and textile waste will require a
combination of holistic extended producer responsibility
(EPR)
policies that work across global governments, dedicated funding, and
unprecedented industry action and collaboration. And as EPR legislation around
various material streams takes hold in Europe, the
UK,
Asia
and parts of the
US,
companies are urged to rethink their sourcing and design strategies —
emphasizing regionalization and circularity. 45 percent of brands
surveyed
by Global Fashion Agenda and the United Nations Environment Program earlier
this year reported that they have set targets to derive at least 10 percent of
their revenue from circular business models by 2040.

Despite the potential, the fashion industry lacks a comprehensive system for
circularity; current, fragmented approaches — often, limited by
geography
— are failing to achieve commercial viability and scale. Deeper collaboration
with logistics partners can support more streamlined operations, while aiding
compliance with tightening regulatory requirements and in demonstrating positive
environmental impacts.

“Logistics is an integral part of any successful circular system,” says Kaisa
Tikk, Head of Commercial Sustainability
at Maersk. “Circularity requires both fashion companies and their logistics
providers to rethink the setup of linear supply chains. Collaborating with
logistics providers will provide fashion companies guidance on how logistics can
help enhance fashion supply chains’ transition to circularity and avoid
logistics being a road blocker during implementation of circular systems.”

To guide stakeholders, the publication outlines essential elements for
implementing effective reverse logistics, including:

• Network design: Expanding reverse logistics beyond consumer returns to
  capture and valorize post-industrial textile waste flows and unsold goods.

• Financial ownership: Establishing clear financial models to define
  roles, responsibilities and profit-sharing — enhancing collaboration and
  investment.

• Boosting collection volumes: Developing infrastructure for efficient
  collection and processing of textile waste — essential for scaling solutions
  and reducing recycled fiber costs.

“Global Fashion Agenda’s new report on reverse logistics is a crucial guide for
the fashion industry, offering clear strategies for embracing circular systems
that not only enhance business operations but also harness the opportunities of
used textiles,” says GFA CEO Federica
Marchionni. “I
strongly encourage leaders to engage deeply with their logistics partners, use
innovative technologies and adopt a comprehensive approach to circularity. By
doing so, we can collectively extend the lifecycle of products, reduce waste and
create substantial economic value.”

This landmark report is a call to action for the entire fashion industry to
embrace reverse logistics to establish a truly holistic and highly effective
circular fashion system. Fashion brands, retailers, manufacturers, logistics
providers and textile recyclers are invited to join Global Fashion Agenda and
Maersk in collectively advancing the necessary strategies and infrastructure.

Published Sep 5, 2024 2pm EDT / 11am PDT / 7pm BST / 8pm CEST

Sustainable Brands Staff

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